DraftKings on Thursday announced that revenue for the third quarter was $1.3 billion, an increase of $185 million, or 16%, compared to $1.1 billion million during the same period in 2025.
A news release said that the revenue increase was “driven primarily by continued healthy customer engagement and higher sportsbook net revenue margin.”
“The third quarter marked a pivotal moment for DraftKings, as the predictions offering we have been building is now powering meaningful growth for our business,” DraftKings CEO and Co-Founder Jason Robins said in a statement. “More than 1.6 million customers have engaged with predictions year-to-date, and combined with the strength of our core, we believe we are set up for an exceptional 2027.”
Monthly unique payers increased about 13% to 4.1 million. Average revenue per monthly unique payers increased about 3%, or $3, to $109 for the three months ended September 30.
“Our core business continues to generate significant free cash flow, which we are deploying to fund growth in our predictions business at attractive payback periods,” said DraftKings’ Chief Financial Officer Alan Ellingson. “We are introducing fiscal year 2027 revenue guidance of $7.35 billion to $7.75 billion, an increase of 17% year-over-year at the midpoint, and Adjusted EBITDA guidance of $800 million to $1 billion, which includes $300 million of Adjusted EBITDA investment in Predictions at the midpoint.”
The news release said DraftKings is updating its fiscal year revenue guidance range from $6.4 billion to $6.6 billion and its fiscal year Adjusted EBITDA guidance range from $175 million to $275 million, primarily reflecting the company’s increased Adjusted EBITDA investment in prediction markets of $650 million to $700 million.
DraftKings expects fiscal year Adjusted EBITDA from the core business of $875 million to $925 million, which reflects its decision to invest further in iGaming growth as well as the effect of modestly customer-friendly sport outcomes.
Predictions revenue will be immaterial this fiscal year, as new customer promotions will offset the lion’s share of gross revenue generated. The company expects Adjusted EBITDA investment in Predictions from $175 million to $225 million in the fourth quarter.
DraftKings is live with mobile sports betting in 27 states, Washington, D.C., and Puerto Rico, representing about 53% of the U.S. population, and the company is live with iGaming in five states, representing about 11% of the U.S. population.
DraftKings is live with its sportsbook and iGaming offerings in provinces representing about 51% of the Canadian population.
DraftKings closed Thursday at $23.52 on the Nasdaq, up $0.41, or 1.8%.
